A Major Step Toward Sustainability
The Fundão Solar PV Plant marks a significant milestone in Portugal’s transition to sustainable energy. This large-scale solar project — led by Spanish company Dos Grados — features 190,000 solar panels spread across 192 hectares. With a €90 million investment, the plant is designed to meet the annual electricity needs of 61,000 homes and businesses.
By adding considerable capacity to Portugal’s renewable energy grid, the Fundão Solar PV Plant plays a critical role in reducing carbon emissions. The plant is expected to cut carbon dioxide emissions by 826,000 tonnes annually, supporting the government’s targets for climate action.
Khiel Palacios, CEO of Dos Grados, highlighted the project’s role in shaping a sustainable future, stating that its benefits outweigh any potential drawbacks. The plant operates as a clean, efficient power source and provides a model for future renewable projects.
Community Impact and Employment
Beyond its environmental contributions, the Fundão Solar PV Plant has positively impacted the local community. Situated on private land within the municipalities of Alcaria Pêro Viseu and Valverde, the project created ten jobs for local residents. To address potential environmental or economic concerns, the municipality of Fundão has collaborated closely with Dos Grados to minimise any negative effects.
The project has also fostered partnerships with local landowners by integrating agricultural practices into the surrounding areas. Native livestock grazing and tree planting take place alongside the solar panels, a strategy that helps preserve the region’s agricultural heritage. These combined efforts promote sustainable land management and support the local economy.
A key feature of the Fundão Solar PV Plant is its emphasis on community engagement. A pilot project has introduced a new energy community model aimed at providing affordable renewable energy to nearby residents and businesses. Within six to seven months, locals are expected to benefit from reduced energy costs and have the chance to participate in managing the plant.
Overcoming Technological Challenges
Despite its success, the Fundão Solar PV Plant faced several unexpected technological challenges during its development. One of the primary issues was the intermittent nature of solar energy production, which depends heavily on weather conditions.
In response to these challenges, Dos Grados is exploring investments in wind power and energy storage solutions. These additions could improve the plant’s adaptability and ensure a steady power supply, even during periods of low solar activity. SyCells — a technology partner — has identified electro-intensive industries like data centres and electrolysis facilities as key opportunities for renewable energy integration.
Driving Portugal’s Energy Transition
The Fundão Solar PV Plant is a key part of Portugal’s broader energy transition goals. Last year, renewable sources accounted for 35% of the country’s electricity, and the government aims to increase this to 51% by 2030. Projects like the Fundão plant are essential for achieving these targets, though continued investment in renewable technologies is necessary to maintain momentum.
Maria João Pereira, a renewable energy expert, acknowledged the project’s role in advancing the country’s energy goals. However, she noted that challenges remain, particularly in scaling up renewable energy infrastructure and integrating it into the national grid.
The Fundão Solar PV Plant comes at a time when Portugal is achieving record-breaking renewable energy production. According to Redes Energéticas Nacionais (REN), the national grid operator, renewable energy covered an impressive 72% of the country’s electricity consumption in the first 27 days of 2025.
Wind power was the largest contributor at 34%, followed by hydropower at 28%. Solar and biomass each represented 5% of the total consumption mix, highlighting Portugal’s multi-faceted clean energy strategy.
On January 27, Portugal set a new peak for renewable energy production, reaching 10,845 MW. This surpassed the previous record of 10,434 MW set in March 2024. These figures highlight the rapid progress Portugal is making in expanding its renewable energy capacity.
Portugal’s leadership in renewable energy is a testament to its commitment to sustainability. By continuing to invest in projects like the Fundão Solar PV Plant, the country is setting an example for others to follow in the global transition to clean energy.
